Irony of unspent Sh28bn Covid cash amid doctors’ strike

The Health Ministry is on the spot over an unspent Sh28 billion which was meant for sector upgrades in preparation for pandemics.

The government secured a grant of Sh33 billion for the venture which was to run between March 2020 to March 2025.

However, as of June 30, 2023, disbursements of Sh28.4 billion—which translates to about 84 per cent—had not been drawn by the project.

Auditor General Nancy Gathungu has cast doubt the ministry would be able to absorb the amount with less than 18 months to the end of the project date.

“At least 84 per cent had not been drawn by the project with one and a half years remaining till the project end date,” the auditor said.

Gathungu says in a review of the project’s books of account as of June 30, 2023, that the situation would cost the project’s intentions.

‘In the circumstances, the objectives of prevention, detection and response to the Covid-19 outbreak and strengthening of national systems for public health emergency preparedness in the country may not be achieved,” the report states.

The findings could cast light on the irony of the undrawn billions against the ongoing brawl between the government and doctors who have rejected a Sh6 billion offer from the government.

A majority of the striking doctors were hired to largely help the country respond to the Covid-19 crisis.

The query is besides payments running into hundreds of millions of shillings (Sh857.5 million) which have not been backed up by any proof.

Among the payments queried include some Sh385 million which was paid out in respect of mass vaccinations.

The report shows that the money—expended under the use of goods and services—was transferred to an Mpesa holding account.

“The Mpesa statement disclosing individual transactions and reconciliation statements could not be confirmed,” Gathungu said.

Also flagged is Sh3.5 million which was reported as compensation for employees but not supported with payroll.

Gathungu has also queried expenditures to the tune of Sh469 million which were not supported with contracts, invitations to tender, requests for quotations and bills of quantities.

“In the circumstances, the completeness and accuracy of total payments reflected in the statement of receipts and payments could not be confirmed,” the report reads.

Covid-19 funds are also being absorbed slowly, the audit shows, citing Sh2 billion which was not spent during the year under review despite being budgeted for.

“The underfunding and underperformance may affect the project’s key goals of preventing, detecting and responding to the threat posed by Covid-19 and strengthening national systems for public health preparedness,” the auditor said.

Gathungu further raised concerns that during the year under review, the management provided draft budget estimates instead of the approved budget.

At the same time, the budget estimates were not prepared in line with the provisions of the PFM (National Government) Regulations, 2015.

The rule states that the national government budget estimates and that of county governments shall be prepared, accounted for and reported in accordance with the set rules.

“The management was in breach of the law in the circumstances,” the auditor general explained.

The project’s internal controls over the issuance of ICT materials were also found to be weak, pointing to the possibility of pilferage and breach of ICT networks.

A budget deficit of Sh1.5 billion has also been flagged, considering that budgets should be balanced.

Whereas the project indicated an income of Sh2.7 billion, it spent Sh4.2 billion, resulting in a budget deficit of Sh1.5 billion contrary to the regulations.

PFM regulations state that unless provided otherwise in the PFM Act, the regulations or any other guidelines developed in furtherance of the laws, the budget shall be balanced.

“In the circumstances, the management was in breach of the law,” Gathungu reported.